Investing.com - Morgan Stanley initiated coverage on CRISPR Therapeutics (NASDAQ:CRSP) with an equalweight rating and a price target of $60.00. The stock currently trades at $49.44, representing potential upside to the target, though InvestingPro data suggests the stock may be overvalued at current levels based on its Fair Value analysis.
The firm views the stock as a show-me story at current levels, with much of the near-term upside from Casgevy already reflected in the valuation. Casgevy represents the first FDA-approved CRISPR/Cas9 gene-editing therapy and is being developed in partnership with Vertex.
Morgan Stanley projects Casgevy sales of $327 million in 2026, supported by pediatric expansion, share shift, and reimbursement momentum. The firm models peak sales of approximately $3 billion by 2035 and expects the franchise to reach profitability in 2029. Notably, 11 analysts have recently revised their earnings upwards for the upcoming period, according to InvestingPro Tips, which offers 7 additional exclusive tips for CRSP investors.
Vertex has indicated strong visibility into 2026 revenues, with Casgevy expected to contribute meaningfully to its $500 million-plus non-cystic fibrosis revenue target. The therapy faces a lag of approximately nine to 12 months between patient initiations and revenue recognition.
Morgan Stanley notes that CTX310 Phase 1b data expected in the second half of 2026 will represent the first meaningful proof point for CRISPR Therapeutics’ in vivo platform in a large cardiometabolic indication.
In other recent news, CRISPR Therapeutics announced the pricing of $550 million in convertible senior notes due in 2031, which was increased from the initially planned $350 million. This private offering to qualified institutional buyers includes an option for initial purchasers to acquire an additional $50 million in notes within 13 days. Piper Sandler responded to this development by raising its price target for CRISPR Therapeutics stock to $110 from $105, maintaining an Overweight rating, and estimating the company’s pro forma cash at $2.56 billion. Meanwhile, BofA Securities adjusted its price target for the company to $83 from $86, citing valuation concerns but continued to uphold a Buy rating. The firm noted that CRISPR Therapeutics’ balance sheet remains robust following the recent convertible issuance. Additionally, Citizens reiterated a Market Outperform rating with an $80 price target, expressing optimism about the company’s gene editing prospects, particularly in cardiovascular disease. These updates reflect the ongoing interest and varied analyst perspectives on CRISPR Therapeutics’ financial and strategic moves.
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